The sell-off began last week after data in the US showed stronger wage growth, which raised expectations that US interest rates might start to rise more quickly to tackle inflation.
London's FTSE 100 was down 150 points or 2% at 7,184.74 in mid morning trade. Frankfurt's Dax and Paris's CAC were down 2.2% and 2% respectively.
On Monday the FTSE 100 closed at its lowest level since April of last year.
The falls follow some good years for investors.
In 2017 the Dow in the US was up 25% and London's FTSE 100 rose 7.6%.